It is no secret that bikes and scooters are the most used vehicles for transportation by the people of India. While motorbikes have always been popular, recently, scooters have evolved into a staple for daily transport. Women, especially, prefer the light and easy to handle scooters. Additionally, they also provide plenty of storage so that your favorite handbag is not ruined. The craze of scooters is such that even men prefer them as they provide space to keep helmet in addition to space in the front so that they do not have to carry their backpacks. However, despite the growing craze of scooters and the existing craze of bikes, one fact remains the same, they both cost a lot of money. The average price of two-wheeler is anywhere between INR 60,000 to INR 70,000.
Still, there is no need to worry! You can avail a two-wheeler loan from banks, NBFCs (Non Banking Financial Companies), and online lenders. So, what do you need to know before availing a two-wheeler loan? Well, the first factor that you need to consider is the two-wheeler loan interest rate. Whether you are buying a bike or scooter, you need to know the interest rate so that you can ascertain the Equated Monthly Installments (EMIs). However, the two-wheeler loan interest rate depends on a variety of factors.
Factors Affecting Two-Wheeler Loan Interest Rate
Well, one factor that obviously affects the two-wheeler loan interest rate is competition between lenders such as banks, NBFCs, and online lenders. In addition to industry competition, other factors that affect interest rate of loans are:
- Principal Amount
- Credit Score
- Tenure of the Loan
- Financial Statement
- Type of Employment
- Current Income
- Repayment Schedule
- Existing Liabilities
In order to calculate two-wheeler loan EMI, you will need to know the following aspects:
- Loan amount that will be provided by the bank. Denoted below by P
- The percentage at which the loan will be charged by bank or lender. It is expressed numerically as annual percentage of amount of loan that is outstanding. Denoted below by R
- The term or duration of the loan expressed in number of years. Denoted below by N
Calculating Personal Loan EMI Manually
For calculating EMI on personal loan manually, you will need to input the formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Two-Wheeler Loan EMI Calculator For Your Aid
You can easily calculate the EMIs using the formula mentioned above, but there is a faster and easier way to do it by using online Two-Wheeler Loan EMI Calculator by PaySense. It will help you in calculating the monthly amount that you will owe to the bank in order to repay the loan. Check out how to calculate EMI on a personal by using MS Excel. You can avail personal loans up to INR 2 Lacs instantly. If you are looking for instant & hassle-free two-wheeler loans with excellent interest rates, then look no further than PaySense!
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs